The possibility of losing an extensive designer wardrobe that spans the likes of Valentino, Dior and Chanel, may not be covered by your homeowners insurance.
Unlike art, jewelry and watches, insurance companies have traditionally considered apparel to be among household “contents,” which are subject to deductibles and a host of exclusions, until now.
Insurer AIG is launching a new insurance product this month in New York and Texas, a so-called “wearable collections coverage,” that will cover clothing, shoes, handbags and other accessories, according to the Wall Street Journal.
A clothing collection valued by its owner at $1 million would cost around $3,000 a year to insure, according to AIG.
High net worth individuals in the United States pay about $5 billion in annual insurance premiums, but AIG estimates that only about 20 percent of them are sufficiently insured.
AIG is seeking state-to-state approval for the couture insurance product and hopes to have it available in most states by the end of the year.
Read more at WSJ.com (a subscription may be required)